Income and price limits under Local Authority Home Loan scheme to be increased
Housing Minister Darragh O’Brien will bring a memo to Cabinet on Tuesday to increase the house price limits for all local authorities and hike income limits for applicants. Picture: Damien Storan
Income and house price limits under the Local Authority Home Loan scheme are set to be increased so more people can apply for a State-backed mortgage.
Housing Minister Darragh O’Brien will bring a memo to Cabinet on Tuesday to increase the house price limits for all local authorities across the country and hike income limits for applicants.
The scheme has faced criticism after figures revealed almost 60% of people who apply for the loan are refused for various reasons, including some social welfare supports pushing people over the income limit threshold.
The scheme was introduced to provide State-backed mortgages to those who are finding it difficult to get finance from a bank and replaced the similar Rebuilding Ireland Home Loan scheme.
The Local Authority Home Loan scheme can be used for new, second-hand, and self-build homes.
Income limits for single applicants will increase from €50,000-€65,000 to €70,000 nationwide. For joint applicants, the limit will increase from €75,000 to €85,000 across the country.
Changes to house price limits under the scheme differ depending on the area.
In Dun Laoghaire-Rathdown, South Dublin, Dublin City, Fingal, Wicklow, and Kildare, the limit will be €360,000, an increase of €40,000.
There will be a €10,000 increase in Galway City and county, Cork City and county, Louth, and Meath, with the new limit set at €330,000.
In Limerick, Waterford, Clare, Wexford, Westmeath, and Kilkenny, house price limits will get a €50,000 increase to €300,000.
For all other local authorities, the house price limit will be set at €275,000, an increase of €25,000.
Since 2018, just over 3,300 people have bought a home through the Local Authority Home Loan and previous Rebuilding Ireland Home Loan schemes.
Meanwhile, the Cabinet is to consider a report by the Attorney General, Rossa Fanning, who was asked to look into allegations that the State deliberately denied payment of refunds to people illegally charged nursing home fees.
A Government source said the report will be published subject to Cabinet approval and that it focuses on the legal advice given to the government at the time.
Two Dáil committees want to investigate allegations contained in reports that the State deliberately denied the payments in a bid to contain a potential €12bn pay-out.
A whistleblower claimed documents showed there was a secret government strategy to limit payouts to people on medical cards in private nursing homes by settling cases out of court once applications for documents were made.
Taoiseach Leo Varadkar and Government ministers have defended the strategy.
